The Economics of Gambling
Horse Racing: A Game of Skill?
How betting on horse races is legal in India because the Supreme Court held in 1996 that it is a game of skill, and how tote betting works at race clubs.
Betting on horse racing is legal in India.
Legal basis
In 1996, the Supreme Court (in K.R. Lakshmanan v. State of Tamil Nadu) held horse racing is a game of skill, since outcomes depend on horses’ fitness, jockeys and training.
Race clubs
Turf clubs in Mumbai, Bengaluru, Kolkata, Chennai, Hyderabad, Mysuru and Pune run races.
Tote betting
Pari-mutuel (tote) betting pools all bets on a race; winners share the pool after the club’s cut.
Bookmakers
Licensed bookies also offer fixed odds at tracks.
Taxes
Winnings and betting face GST and income tax.
Decline
Racing attendance has fallen as other entertainment grew.
All bets on a race go into a pool; the club takes its share and the rest is divided among winning bettors.
Horse racing betting is legal as a game of skill.
- The Supreme Court held racing a game of skill in 1996.
- Turf clubs run races in major cities.
- Tote betting pools bets.
- Racing attendance has declined.
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